More Insurance Providers are Dropping Tesla Cybertruck Coverage, Cite “High Cost to Replace Parts”

Following in GEICO’s footsteps, more insurance companies are dropping Cybertruck policies. One such individual who lost his Cybertruck coverage says his insurer cited the "high cost of replacing Cybertruck parts" as the main reason.

A few weeks back, we broke the story that GEICO was terminating Cybertruck insurance policies.

Although GEICO was sending out letters to Cybertruck owners directly informing them that their insurance coverage would “not renew” and that “this kind of vehicle does not meet our underwriting guidance,” when confronted about its action, the Insurance company nonetheless responded in a typical corporate manner without confirming or denying the issue.

However, parsing GEICO’s response, which we shared in its entirety in a previous article, the conclusion is that the company has revoked some Cybertruck personal vehicle insurance policies; however, Cybertruck coverage is still available in the commercial vehicle program, which will have higher insurance premiums.

GEICO’s noncommittal answer at that time has left a lof of people confused about whether insurance companies are revoking Cybertruck policies.

So far, we have shared multiple stories of Cybertruck owners who have been denied insurance coverage; however, for those still unconvinced, we have yet another account of a Cybertruck owner (Michael) who has been denied insurance coverage, and this time not by GEICO but by a smaller Insurance company.

A Wisconsin resident, Michael, shared his story on the Cybertruck Owners Club forum. The brand-new Cybertruck owner disclosed his experience under the title “Insurance rejected Cybertruck coverage (post for awareness).”

Here is what Michael wrote…

“I know this has been covered before, but I thought it was worth mentioning again. I have automatic coverage for 14 days from the date I purchased my Cybertruck under my existing policy, which also covers my home and other vehicles, so I’m currently insured until Thursday.

My broker informed me that they had to farm out the Cybertruck to 5 other carriers, and he sent over two that were “competitive.” Getting separate coverage for the Cybertruck allows me to maintain my present coverage, which I don’t want to give up on my other vehicles.

The two carriers they sent me were Progressive and Travelers, but I’m not a huge fan of these big box-style insurance agencies; thus, the reason for my broker I’ve had for 9 years shopping my policies every 6-12 months.

Since it will be a singular policy without a multi-policy discount, I thought I’d ask the forum here who they have for their Cyberbeasts."

At this point, you might be wondering why exactly Michael’s insurance company refused to cover his Cybertruck despite him already having a multi-vehicle policy with five vehicles. And thankfully, Michael addressed this issue in his post.

Continuing, he writes…

“If anyone is interested in the reason for the denial, they claim the high value of the car and the cost to replace parts, but I’m not really buying that because I’ve had a McClaren on the same policy for two years before selling it and they never had an issue with that.”

Michael’s experience is yet another proof that insurance companies aren’t too keen to cover Cybertrucks. 

Why don’t insurance companies like the Cybertruck?

In Michael’s case, the insurance company came out and said that the high cost of replacing Cybertruck parts was one of the main reasons for refusing to insure his truck.

For anyone who has been following Cybertruck failures over the past few months, this is not at all surprising. Cybertruck service issues are so well documented that they have become a running joke even amongst current Cybertruck owners.

The joke generally goes: a Cybertruck owner gets into a minor fender bender, and the comments are that the vehicle will have to be totaled or a Cybertruck owner will get a small scratch, and the joke is that it’ll cost tens of thousands to fix.

Over the past few months, we have covered multiple nightmare Cybertruck service stories. One example is a person who shared that despite eight service visits, Tesla has yet to fix the issue with his Cybertruck.

There is also the famous story of the Cybertruck owner who was left stranded on the road by his truck on four separate occasions.

Tesla gave this person a replacement Cybertruck; however, his second Cybertruck failed again. Finally, Elon Musk had to be personally involved to fix his truck, and Tesla engineers were forced to drill open his Cybertruck to get access inside.

We can share countless such stories; however, the biggest sign that there is a problem with Cybertruck's reliability comes directly from Tesla employees.

Tesla service technicians say they are waiting for upper management to issue an official Cybertruck recall to fix widespread issues with the truck.

Overall, the high failure rate, low parts availability, and long repair time appear to be some of the reasons insurance companies are declining to cover Cybertrucks.

We’ll monitor the Cybertruck insurance landscape as it unfolds; however, until then, please let us know what you think in the comments. Share your ideas by clicking the red “Add new comment” button below. Also, visit our site, torquenews.com/Tesla, regularly for the latest updates.

Image: Screenshot from Techie Dani on X

For more information, check out: Tesla Finally Responds to the Cybertruck Tow-Hitch Controversy, Says “The 11,000 lb Tow Rating Isn't Absolute”

Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.